Challenges and Transformations

French automotive manufacturing faces significant challenges. Competition from China, electrification's high costs, and changing mobility patterns threaten traditional business models. Yet French manufacturers show remarkable adaptability. Renault's revival of Alpine shows how heritage brands can find new relevance. PSA's merger with Fiat Chrysler, creating Stellantis, provides scale while maintaining brand identities.

The transition to electric vehicles plays to French strengths. Nuclear power makes France's electricity among Europe's cleanest, giving French EVs genuine environmental benefits. Government support through bonus payments and infrastructure investment creates favorable conditions. French battery technology, developed through companies like Saft, provides strategic independence.

New players emerge from France's start-up ecosystem. Navya produces autonomous shuttles for controlled environments. Software République, linking Renault with technology companies, develops mobility services beyond traditional manufacturing. These initiatives show French automotive innovation evolving beyond metal and motors to services and systems.